A conservative estimate
to field a competitive Nextel Cup car is in the twenty million dollar range annually. That covers the cost of the cars,
team salaries, travel expenses, and the driver salary which can eclipse the payroll for the rest of the team. How do
teams cover these expenses? It's mostly from the support provided by the primary sponsor. Teams usually have associate
sponsor deals that provide another smaller measure of funding and for that, the associate sponsor usually gets some of the
driver's time. All teams get some contingency sponsor money. Those small decals that adorn the quarter panels of
the cars are all worth something.
So, in the case of the
Junior deal, the sponsor is effectively covering all the expenses and for that they get to put their product name and logo
on the hood of the car. That sounds to me like a narrow use of advertising dollars, but then I am not an advertising
executive. If it was just that, it really would be a thirty million dollar billboard. What they are getting for
their investment is the name and face of Dale Earnhardt Jr.
A big part of the deal
will be appearances by Junior to help promote the sponsor's product. Personally, I'm having a hard time seeing the can
of Mountain Dew where the Budweiser Beer can has been all these years. But then, I can't call Candlestick, "Monster Park,"
either.
At the end of the day, it's
all about what the team and the driver does to promote the sponsor's product. The product is a very easy thing to see
with PepsiCo. The can of Mountain Dew is a tangible, sellable item. You can wrap your hand around it. The "Product"
is much tougher to see on the National Guard side of the equation. I'm as patriotic as the next guy, but what are they
trying to sell? What's the product? In the world of corporate sponsorship, where do the military sponsors fit?
2006 StockCar Review.
